Multiple fund firms bullish on equities at autumn strategy meetings, AI remains key theme

As the golden autumn season unfolds, China’s public fund industry has entered a window for "autumn sowing." Recently, several fund management companies—including Hwabao Fund, CCB Principal Asset Management, HSBC Jintrust Fund, and Fullgoal Fund—have held autumn investment strategy meetings to assess future market opportunities.

Overall, institutions widely favor the allocation value of equity assets, believing there are ample investment opportunities to seize. In terms of investment direction, AI remains a key investment theme.

Equity Assets Offer Rich Investment Opportunities

At the current juncture, many fund managers believe that China’s economy demonstrates strong resilience, and the medium- to long-term allocation value of equity assets is becoming increasingly apparent, offering abundant investment opportunities.

Min Liangchao, Director of Equity Research and Fund Manager at HSBC Jintrust Fund, noted that since the third quarter, a seesaw effect has emerged between the tech sector and other sectors. However, the market may still be in a phase of capital rebalancing rather than a fundamental style shift. From a fundamental perspective, the AI industry trend has not undergone any fundamental change; the recent stock price volatility reflects more of investors’ concerns about the future.

Yuan Jianjun, Vice President of China Universal Asset Management, believes that massive household savings are likely to gradually shift toward equity assets in a low-interest-rate environment, highlighting structural opportunities. In addition, valuations of high-quality listed companies are globally attractive.

Zhang Ziyan, Fund Manager at Fullgoal Fund, commented: "Beyond the AI investment theme, new investment themes—such as easing inflation expectations and improving traditional economy—may be emerging. A period of declining asset correlation is often a more favorable environment for diversified asset allocation. Now may be the time to start being optimistic."

Tang Hui, Fund Manager at Hwabao Fund, argued that in the current high-volatility market environment, investment decisions should be anchored to corporate fundamentals. For risk assets, EPS is key to withstanding valuation fluctuations. The AI industry trend is a fundamental factor that must be emphasized, with the focus on whether there is a better supply-demand relationship and a larger market.

AI Remains a Core Investment Theme

Judging from the strategies recently released by multiple fund companies, AI remains a hot topic frequently mentioned by fund managers.

Zuo Jian, Fund Manager at China Universal Asset Management, stated that artificial intelligence, China’s independent and controllable technology, and high-end manufacturing remain the core of growth stocks. AI development has now entered a phase where reasoning-side demand is spreading, driving the industry into a period of rapid growth. In particular, domestic large models have made continuous progress this year, surpassing a certain threshold to become highly usable and cost-effective, thereby driving nonlinear growth in demand for AI models and agents. In terms of independent and controllable technology, equipment and materials have largely reached a usable stage, and the localization ratio continues to rise. The underlying logic is that semiconductors serve as the infrastructure for China’s AI industry, driven by dual demand from accelerated independent controllability and AI demand. Equipment, materials, manufacturing, and advanced packaging are all growing rapidly.

Jiang Yingde, Fund Manager at CCB Principal Asset Management, believes that tech stock investment has re-entered a period of debate, with market divergence increasing. At the current juncture, AI industry investment over the next few years may enter a phase of spiral acceleration between applications and hardware. That is, AI commercialization continues to accelerate, further driving hardware investment, which in turn promotes application development. In this new phase, the focus should be on tracking rather than forecasting, paying close attention to model iteration and changes in applications.

In Tang Hui’s view, the vast imagination space for the future AI industry depends mainly on the competitiveness of domestic models and applications, as well as the linkage effect between primary and secondary market investments driven by the listing of leading companies. She recommends an investment philosophy of "capturing industry trends to amplify returns and managing drawdowns through portfolio management."

Min Liangchao added that the overall profitability of A-shares is currently in an upward cycle. After the high-volatility adjustment in the third quarter, crowding has eased somewhat. He is optimistic about opportunities in AI-related technology sectors. In addition, many companies in cyclical, manufacturing, and export-oriented sectors are seeing marginal improvements in business conditions. If the consumer sector gradually recovers, there may also be turning-point opportunities.